The US Federal Reserve said Wednesday that it kept its benchmark interest rate unchanged between the 0.00% - 0.25% range, but moderation in its $120 billion asset purchase program would begin soon.

"If [economic] progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted," the Federal Open Market Committee (FOMC) said in its statement.

The central bank said it purchases securities by at least $80 billion and agency mortgage‑backed securities by at least $40 billion per month until substantial further progress has been made toward its maximum employment and price stability goals to support the flow of credit to households and businesses.

"Inflation is elevated, largely reflecting transitory factors," the FOMC said, and it will continue to monitor implications of incoming information for the economic outlook.

The bank reiterated that it will allow inflation to run above 2% for some time until labor market conditions improve and maximum employment is achieved./aa